Accounting Software vs GovTech Churn Rate
Side-by-side benchmark comparison, updated March 2026.
GovTech has a lower monthly churn rate (0.8%) than Accounting Software (1.1%), a difference of 0.3 percentage points. GovTech median ARPU is $500 versus $145 for Accounting Software.
Head-to-head benchmarks
| Metric | Accounting Software | GovTech |
|---|---|---|
| Monthly churn | 1.1% | 0.8% |
| Annual churn | 12.5% | 9.2% |
| Median ARPU | $145 | $500 |
| Typical customer base | 500-50,000 | 50-500 |
Top accounting software churn drivers
- Accountant or bookkeeper switched firms and moved clients30%
- Business closed or reduced size below paid tier threshold25%
- Competitor offered lower price with comparable features22%
- Bank feed or payroll integration broke15%
Top govtech churn drivers
- Budget appropriation cycle not renewed for the software line item32%
- Procurement rules required retendering after contract term27%
- Elected official change shifted departmental priorities20%
- Product failed FedRAMP, StateRAMP, or CJIS compliance audit13%
Why govtech retains better than accounting software
The 0.3-point gap between GovTech and Accounting Software reflects differences in switching cost, value density, and purchase motivation. GovTech customers face higher integration and data-migration friction, which extends tenure. Accounting Software tends to have more fragmented alternatives and weaker lock-in. Details in each benchmark page above.
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